OneCare. Protection for life INSURANCE. Product Disclosure Statements: OneCare. OneCare Super OneCare External Master Trust OneCare held in an SMSF

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1 INSURANCE 2013 Risk Company of the Year 2013 Product Disclosure Statements: OneCare OneCare OneCare External Master Trust OneCare held in an SMSF OneCare Protection for life 1 July 2014

2 About OnePath Helping you shape and protect your future OnePath is one of Australia s leading providers of wealth, insurance and advice solutions. We have been helping Australians grow and protect their wealth for over 130 years, previously as Mercantile Mutual and more recently as ING Australia. The OnePath entities are wholly owned subsidiaries of Australia and New Zealand Banking Group Limited (ANZ) and are part of ANZ s Global Wealth division. ANZ is committed to building lasting partnerships with our customers, shareholders and communities in 32 countries including Australia and New Zealand throughout Asia and the Pacific, and in the Middle East, Europe and America. We provide a range of banking and financial products and services to around eight million customers and employ 48,000 people worldwide. OnePath has a comprehensive range of wealth and insurance products available through financial advisers or direct to customers making it easier for you to find the solution that best suits your needs. At OnePath we value and appreciate our customers, our staff and the communities we operate in. We are committed to acting with the highest standards and to meeting our corporate responsibilities. We also encourage and support staff involvement in volunteering and charitable activities supporting the wider community. OnePath actively participates in forums looking at regulatory and industry change. We also regularly review and conduct research to ensure we are attuned to changing customer and market needs. Important information An application for OneCare as described in the Product Disclosure Statement (PDS) must be made on a current OneCare Application Form. Your application is subject to acceptance by OnePath Life, who may accept or decline your application, or accept it on special conditions. Any insurance policies arising from applications are issued by OnePath Life. Australia and New Zealand Banking Group Limited (ANZ) ABN is an authorised deposit taking institution (Bank) under the Banking Act 1959 (Cth). OnePath Life and OnePath Custodians are owned by ANZ they are the issuers of the products but are not Banks. Except as set out in the issuer s contract terms (including this PDS), this product is not a deposit or other liability of ANZ or its related group companies. e of them stands behind or guarantees the issuer. The information provided is of a general nature and does not take into account your personal needs and financial circumstances. You should consider the appropriateness of the information, having regard to your objectives, financial situation and needs. This PDS sets out the significant benefits and risks associated with holding a OneCare policy, and provides information about the costs of each product. The full terms and conditions for each product are contained in the Policy Terms and Policy Schedule which we will issue to you if we accept your application. Once we have issued a Policy Schedule, you can request an additional copy of the Policy Terms free of charge. If there is any inconsistency between this PDS and the Policy Terms, the full terms and conditions contained in the Policy Terms will prevail to the extent of the inconsistency. These documents are important and you should read them carefully. We reserve the right to change matters which are the subject of representations, such as administrative matters, or fees and charges. Certain information in this PDS, including taxation information, is based on the continuance of present laws and our interpretation of those laws. This information may change from time to time. Updated information will be available free of charge from onepath.com.au. We will issue a supplementary or replacement PDS if there is a materially adverse change to or omission of information in this PDS. You can request a paper copy of any updated information, free of charge, by contacting OneCare is only available to persons receiving this PDS in Australia. It is not available, directly or indirectly, to persons in any other country. Note: OneCare and Protection for Life are trademarks of OnePath Administration Pty Limited. OnePath Custodians Pty Limited (OnePath Custodians) OnePath Life Limited (OnePath Life) ABN AFSL RSE L Pitt Street Sydney NSW 2000 Phone ABN AFSL Pitt Street Sydney NSW 2000 Phone

3 Contents Section Page The importance of a financial adviser 4 OneCare 5 How your policy may be owned 6 How OnePath Life can help 8 Be rewarded with OnePath Life 12 How much can you insure? 13 Limits of your OneCare cover 15 OneCare covers Life Cover Total and Permanent Disability Cover Trauma Cover 30 OneCare OneCare (including OneCare External Master Trust and OneCare issued to a Self Managed Fund (SMSF) or a small APRA fund (SFA)) is issued by OnePath Life Limited ABN AFSL (OnePath Life). OneCare is issued by OnePath Custodians Pty Limited ABN AFSL RSE L (OnePath Custodians). OnePath Custodians is the trustee of OnePath MasterFund ABN RSE R (OnePath MasterFund). OnePath Life and OnePath Custodians are the issuers of this Product Disclosure Statement (PDS). Both OnePath Life and OnePath Custodians are responsible for the contents of this PDS. 4. Child Cover Extra Care Cover Income Secure Cover Business Living 77 Trauma definitions Full payment conditions 80 Partial payment conditions 84 General terms and phrases 86 What is OneCare? 94 What else do I need to know? 99 How to Choose the award-winning protection you deserve with OnePath Life s OneCare In 2008, 2010, 2011, 2012 and 2013 OnePath was named Risk Company of the Year at the Money Management/ DEXX&R Adviser Choice Risk Awards. In 2008, 2009, 2010, 2011, 2012 and 2013 OnePath s OneCare product won the prominent five-star CANSTAR Outstanding Value for Life Insurance award. 3

4 How to read this PDS The following table outlines the meaning assigned to particular references throughout this PDS for each policy in the OneCare range. Policy References to Mean OneCare OneCare OneCare External Master Trust OneCare through an SMSF we, our, us, and OnePath you, your and policy owner life insured we, our, us, and OnePath you, your and life insured policy owner we, our, us, and OnePath you, your and life insured policy owner we, our, us, and OnePath you, your and policy owner life insured OnePath Life. The applicant(s) for insurance and the prospective owner(s) of the policy. The person whose life is to be insured. If the policy owner has taken out the policy on their own life, they will also be the life insured. OnePath Custodians. The member of the OnePath MasterFund whose life is insured under the policy. OnePath Custodians as Trustee of the OnePath MasterFund. OnePath Life. The member of the Master Trust named on the Policy Schedule whose life is to be insured under the policy. The Trustee of the Master Trust to which the policy is issued. OnePath Life. The applicant(s) for insurance and the prospective owner(s) of the policy. The person whose life is to be insured. If the policy owner has taken out the policy on their own life, they will also be the life insured. All other terms that appear in bold throughout this PDS are defined in the Trauma definitions and General terms and phrases sections of this PDS. The importance of a financial adviser At the time of application, your financial adviser can help you weigh up your options, and ensure you re making the right choices for you and your situation. With an understanding of your goals, your adviser can help you: build a policy that offers you the right types of cover calculate the level of cover you need choose the features and options that are important to you structure your insurance cost-effectively. Your financial adviser is required to provide you with a Statement of Advice detailing your insurance requirements, and the payments they will get from providing you with insurance advice. Once your policy is in force, it s also important to meet regularly with your financial adviser to ensure your cover continues to meet your needs. Your OneCare insurance should be based on your personal circumstances both now and as they change in the future. At claim time, your financial adviser may have a fundamental role in guiding and supporting you through the claims process. When you purchase your policy through a financial adviser, we may pay your financial adviser a standard commission for selling you this product and for the ongoing management of your insurance portfolio. This payment is incorporated into your premium. You and your financial adviser may agree to commission below the standard commission, in which case your premium may be reduced. Alternatively, your financial adviser, in addition to/or instead of commission, may charge a fee for service directly to you. The adviser may choose to use both options on the one policy. A Financial Services Guide (FSG) is an important document that outlines the type of products and services that each of the licensed OnePath entities is authorised to provide under their Australian Financial Services License (AFSL). Please visit onepath.com.au for a copy of the FSG. 4

5 OneCare is OnePath Life s award-winning life insurance cover With a broad range of cover types to choose from, OneCare is designed to provide comprehensive and flexible protection allowing you to tailor your policy to your needs and those of your family. OneCare even allows you to combine your personal, family, and business insurances, which can potentially reduce your premiums. One policy, many ways to protect The following shows the types of cover available within the OneCare range: Core cover There are the four main types of life insurance cover that are generally suitable for most people. Specific cover There are also specific types of cover which are suitable for certain types of people e.g. business owners (Business ) or people who don t qualify for Income Secure Cover (Living ). Optional extras You can choose to top-up cover by including one or more of the optional extra covers in your policy, but they are only available when your policy includes at least one type of core or specialist cover. Your Policy You can choose to have any of the core cover or specialist cover as stand-alone policies or combine it with another cover. For example you can have a policy with Life Cover only or alternatively you can have a policy with Life Cover and Business. You can also structure your policy so that your covers are linked. For example, you might want to link your Life, TPD and Trauma covers. Lump sum covers Monthly benefit cover Optional extras Core covers Life Cover Provides a benefit in the event of death or terminal illness. Income Secure Cover Provides replacement income during times of illness or injury. Child Cover (For children age 2-15) Lump sum cover for child trauma, death and terminal illness. TPD Cover Provides a benefit in the event of total and permanent disability. Trauma Cover Provides a benefit in the event of serious illness or injury. Trauma Cover Baby Care option (For women planning a family) Provides a fixed benefit for pregnancy complications and congenital abnormalities. Specific needs Business (For small business owners) Provides replacement business expenses during times of illness or injury. Living (For casual workers, homemakers, etc.) Provides support income during times of significant illness or injury. Top-up covers Extra Care Cover Extended Needle Stick (For medical professionals) Lump sum cover for HIV, Hep B & C infection Extra Care Cover Terminal illness Top-up terminal illness cover Extra Care Cover Accidental death Top-up accidental death cover Details of the benefits, and extra cost options for each of these cover types may be found in the OneCare covers section from page 17. 5

6 How your policy may be owned OneCare provides four policy ownership structures. They are where the policy is held: outside superannuation (non-superannuation); inside superannuation and issued to the trustee of the OnePath MasterFund (OneCare ); inside superannuation and issued to the trustee of the Master Trust to which the life insured is a member (OneCare External Master Trust); and inside superannuation and issued to the trustee of your selfmanaged superannuation fund or small APRA fund (SMSF). The policy ownership structure you choose will dictate: how your insurance is owned (e.g. inside or outside superannuation); how you can pay your premiums; the tax treatment of your premiums and benefits; what features and benefits are available on your policy. Your financial adviser can help you choose the policy type, or combination of policy types, that best suit the purpose of your cover. Cover issued outside superannuation If you hold the policy outside superannuation, the policy owner will usually be you, your partner or your company; and the life insured and the policy owner can differ. Cover issued inside superannuation If you hold the policy inside superannuation, it will be owned by the trustee of your super fund. With OneCare, the trustee can be the trustee of your self-managed super fund or small APRA fund (for OneCare), the trustee of the OnePath MasterFund (for OneCare ) or the trustee of the External Master Trust (for OneCare External Master Trust). annuation laws may limit the insurance cover that can be held inside superannuation, and the circumstances under which an insurance benefit may be paid to a superannuation fund member. The trustee of a superannuation fund must determine whether the insurance they have chosen is acceptable, having regard to their obligation under superannuation law and the fund s trust deed. Benefits are paid to the relevant Trustee and the release of these benefits by the Trustee to you will be subject to the relevant Trust Deed and superannuation laws. For information on whether and when benefits can be released to you, please consult your Trustee or financial adviser. 6

7 Look out for these symbols Throughout the PDS these symbols will show you what cover types, benefits and options are available for the policy type and ownership structure you have chosen. OC OneCare (non-superannuation) The OneCare policy owner(s) can be: The life insured Other individual(s) A company or trust (excluding superannuation trust) Other entities. OneCare, OneCare External Master Trust and OneCare SMSF The OneCare policy is issued to the Trustee of the OnePath MasterFund. The OneCare External Master Trust policy is issued to the Trustee of the Master Trust that has an agreement with us. The OneCare SMSF policy is issued to the Trustee of the Self Managed Fund or small APRA fund. Cover ownership grid Cover type Life TPD Trauma Income Business Living Child Extra Care Secure Expense Expense Ownership ^ ^ Extra Care Extended Needle Stick Cover is not available. 7

8 How OnePath Life can help OnePath Life can help ensure that you achieve your goals, no matter what happens to you or a life insured. Below are some of the key scenarios where life insurance is designed to help. If the life insured suffers a serious illness or accident OneCare can help... Replace income. Keep up with the bills and day-to-day expenses if the life insured is unable to work for an extended period. If they re a home-maker, don t forget the non-financial contribution they make to the household. Pay medical bills. Receive additional financial support to help cover out-of-pocket medical expenses or travel costs associated with treatment. Make lifestyle changes. Allow them to take an extended holiday, or reduce their working hours. Income protection insurance Facts and figures # All claims Male Female Total claims paid $93,134,068 $8 0, 377, 651 $12,756,417 Total number of claims 2,879 2, Oldest claimant Youngest claimant Cause of claims External Causes Heart conditions Cancer Other Unemployment Musculoskeletal conditions Back injury % 5% Back injury 32% Musculoskeletal conditions 3% 17% 18% 32% Male 7% Other Cancer Female 18% Heart conditions 8% 14% 37% Cause of claims External causes^ Heart conditions Cancer Back injury Musculaskeletal conditions Other* # These 2013 figures represent Income Secure Cover, Living and Business claims only. ^ The external causes category includes accidental drowning and falls, injuries and poisoning. * The other category includes causes such as appendicitis, benign brain tumour, motor vehicle traffic accidents, nervous system conditions, pneumonia and influenza, rheumatism excluding back, and stroke. The above charts and figures are based on OnePath Life s claims experience for Life Risk in the 2013 calendar year only. 8

9 If the life insured suffers a serious illness or accident Trauma Facts and figures All claims Male Female Total claims paid $86,614,813 $46,735,377 $39,879,436 Total number of claims Oldest claimant Youngest claimant Cause of claims Cancer Other* Heart conditions Stroke Nervous system conditions % 4% Cancer Other* Heart conditions Stroke Nervous system conditions Nervous system conditions 1% 4% 8% Stroke Nervous system con Stroke 23% Male 51% Heart conditions 20% Other* Female Heart conditions Other* Cancer 67% Cancer 17% Cause of claims Cancer Stroke Heart conditions Other* Nervous system conditions * The other category includes causes such as blindness, benign brain tumour, dementia, diabetes mellitus, kidney failure and severe burns. The above charts and figures are based on OnePath Life s claims experience for Life Risk in the 2013 calendar year only. OnePath Life lives by its commitment to deliver on the promise insurance provides. In 2013, OnePath Life helped 10,861 people (around 30 people per day) and their families by paying over $622 million in claims that s approximately $71,053 an hour. 9

10 If the life insured becomes permanently disabled OneCare can help... Replace income. Keep up with the bills and day-to-day expenses for the duration of their working life. If the life insured is a home-maker, don t forget the non-financial contribution they make to the household. Reduce or eliminate debts. A lump sum payment can reduce or eliminate the life insured s debts saving the family from the stress and upheaval of having to sell the family home. Cover additional costs. Receive additional financial support to help cover out-of-pocket medical expenses, and pay for any required modifications to the family home. Total and permanent disability insurance Facts and figures All claims Male Female Total claims paid $28,916, 512 $23,276,074 $5,640,438 Total number of claims Oldest claimant Youngest claimant Cause of claims Back Other* injury Heart Psychiatric conditions conditions Cancer Musculoskeletal conditions External Causes Stroke Nervous system conditions Back injury He Other* Psychiatric conditions Cancer Musculoskeletal conditions External Causes Stroke Nervous system conditions % 5% Heart conditions 6% 7% Heart conditions 10% Back injury Back injury 7% Nervous system conditions 65% Nervous system con 7% 7% Male Stroke 62% External 9% Causes Female Stroke External Causes 8% Musculoskeletal conditions Musculoskeletal con Cancer Cancer Cause of claims Other* Stroke Psychiatric conditions Nervous system conditions Cancer Musculoskeletal conditions * The other category includes causes such as accidental near drowning and falls, Alzheimer s disease, back injury, diabetes mellitus, heart conditions, kidney failure, motor vehicle traffic accidents, paraplegia and rheumatism excluding the back. The above charts and figures are based on OnePath Life s claims experience for Life Risk in the 2013 calendar year only. 10

11 If the life insured dies OneCare can help... Replace income. Give the family the ongoing financial support they need to maintain their lifestyle. If they are a home-maker, don t forget the non-financial contribution the life insured makes to their household. Reduce or eliminate debts. Provide a lump sum to reduce or eliminate debts saving the family from the stress and upheaval of having to sell the family home. Provide for their child/children s education. Ensure their wishes for their children s education can be carried out. Life insurance^ and terminal illness Facts and figures All claims Male Female Total claims paid $97, 65 4, 392 $72,062,856 $25,591,536 Total number of claims Oldest claimant Youngest claimant Cause of claims Cancer Heart conditions Motor vehicle traffic accidents External causes Stroke Nervous system conditions Self-inflicted injury Pn Self-inflicted Pneumonia and influenza Other* Cancer Heart conditions Motor vehicle traffic accidents External causes Stroke Nervous system conditions injury Other* Other* 36% 40% Pneumonia 30% and influenza Self-inflicted injury Pneumonia an Self-inflicted in 7% 2% 1% Male 3% 11% Nervous system conditions Female Stroke 3% 3% External causes 4% 1% Motor vehicle traffic 8% accidents 51% Nervous system Stroke External cause Motor vehicle Cause of claims Cancer Nervous system conditions Heart conditions Self-inflicted injury Motor vehicle traffic accident Stroke Other* ^ Life facts and figures include Child Cover claims. Terminal Illness claims are made under life insurance, total and permanent disability insurance and trauma. * The other category includes causes such as acute respiratory infections, benign brain tumour, chronic lung failure, kidney failure, major head trauma, pneumonia and influenza, and pulmonary hypertension. The above charts and figures are based on OnePath Life s claims experience for Life Risk in the 2013 calendar year only. 11

12 Be rewarded with OnePath Life Interim Cover to get you started Interim Cover provides insurance cover while we consider your application. It is provided free of charge for both an application for a new policy, or an addition to an existing policy. For further information on Interim Cover, including when it commences, please refer to page 104. Guaranteed continuing cover Regardless of changes of the life insured s health your policy will continue each year upon payment of the premium. Events that result in your policy ending can be found within the various OneCare cover sections. Premium discounts OnePath Life rewards you with premium discounts when you combine all of your insurances. There are three key discounts OnePath Life can provide: Size discount based on the amount of cover (in dollar terms) you take out. Multiple cover discount if you take out a combination of cover types. Multiple life discount if you link your policy with an eligible family member or business partner or combination of family members and business partners (known as extended business group ). Guaranteed upgrade of benefits We will automatically add any future improvements we make to any of the features and benefits available under your policy provided they do not result in a premium increase. Any improvements will apply to future claims. The improvements will not apply to current claims, or to any claims resulting from medical conditions which occurred before these improvements came into effect. Your policy will not be worse off as a result of the guaranteed upgrade. If you are inadvertently disadvantaged in any way, then the previous benefit wording will apply. If certain exclusions are noted on your Policy Schedule, these continue to apply. Flexible cover that keeps up with you OnePath Life allows you to increase your level of cover each year to keep up with inflation, or as and when certain major events happen to the life insured, without any additional medicals checks. There are also in-built cover features in some OneCare cover types that can help financially if the life insured becomes pregnant, unemployed, or you experience financial hardship. Qantas Points With OnePath, you can get more out of your insurance by earning one Qantas Point for every dollar of eligible premium you pay up to a maximum of 20,000 points per annum giving you an additional benefit for maintaining your OneCare cover. If you haven t registered your Qantas Frequent Flyer membership number with us, or want to join, here s how you can do it now: If you re already a member, register your membership number at to start earning Qantas Points when you pay eligible premiums. If you re not a member visit to join up today for free. As a valued OnePath customer, we will take care of the joining fee so you can enjoy earning Qantas Points with each dollar of premium you pay. Grief Care Program In the event of a death or terminal illness claim, we may offer you and/or your immediate family members free access to counselling through OnePath Life s Grief Care Program. Talking in confidence to a counsellor can make the grieving process a little easier. The counsellor will help you talk about and explore your feelings and develop strategies to cope with them. Terminal illness claim In the event of a terminal illness claim, we may offer the life insured up to six hours of counselling with a qualified and experienced counsellor. There may be an immediate family member who also wants counselling. In that case the life insured and their immediate family can access up to a combined total of 10 hours of counselling. Death claim In the event of a claim, we may offer an immediate family member six hours of counselling with a qualified and experienced counsellor. If there is more than one immediate family member who may benefit from this service, we will extend our offer to a combined total 10 hours of counselling. Use of the service can start anytime within 13 months of the notification of the death or terminal illness claim being paid. Once the contact has been made with the counselling provider you have 12 months to use the service. Our Grief Care Program is currently provided by Davidson Trahaire Corpsych, an experienced counselling service that provides high quality counselling support. Please note, any entitlement: to earn Qantas Points; and/or to the Grief Care Program, does not form part of your policy and may be withdrawn. 12

13 How much can you insure? When you apply for OneCare, you need to decide how much cover you and your family would need to have if an insurable event occurs. Lump sum covers For Life, TPD, Trauma, Child and Extra Care Cover your cover is called the amount insured. This amount insured is agreed when you apply plus any increases that have been taken, and is what we will pay when a claim is accepted. The minimum amount insured is $50,000 or $10,000 for Child Cover. The maximums for these cover types at time of application: Life Cover TPD ( Any/ -working) TPD (Any/Own/-Working) Link TPD varies $5 million $5 million $5 million TPD Home-maker/ Home-maker $2 million In certain circumstances, up to $10 million is available for Business TPD. Trauma Cover/Link Trauma Cover Extra Care Cover $2 million $1 million Child Cover $200,000 Lump sum paid as an instalment Obtaining an insurance policy as a lump sum may not be suitable to your needs or personal circumstances therefore we also allow you to choose to have your benefit paid in monthly instalments. If you choose the instalment benefit payment type, in the event of a claim being accepted we pay the instalment amount insured for the instalment term selected instead of a single lump sum payment. Instalment benefit amount is paid monthly. You can choose whether the instalment benefit amount will be payable monthly from the date of the event for fixed terms of 3, 5, 10 or 15 years. The instalment amounts will not increase while benefits are being paid unless the Value Protector Option is also selected. Please note, the instalment benefit payment type is not available for: Extra Care Cover, Child Cover and the Business Guarantee Option; or Life Cover and TPD Cover purchased through a superannuation arrangement; Life Cover, TPD and Trauma cover where they are part of a Link arrangement. If Trauma Cover is purchased and a claim is payable for angioplasty, heart attack (minor) or heart surgery (minor), then the amount payable will be paid as a lump sum for these events only, and the monthly instalment amount will be adjusted accordingly to allow for this lump sum payment. The instalment benefit payment type is only available to OneCare non-superannuation policies. Value Protector Option (Extra Cost) This is an extra cost option and is available with the 3, 5, 10 and 15 year instalment fixed terms. If you choose this option, the monthly instalment amount will increase each year on your claim anniversary by 3% when on claim. Example how instalment benefit amount works: Life Cover Fixed Term without Value Protector Life Cover Fixed Term with Value Protector Fixed Term 5 years 5 years Monthly Instalment at the start of the benefit $3,000 $3,000 Monthly Instalment at the start of the 2nd year of the benefit $3,000 $3, 090 Monthly Instalment at the start of the 3rd year of the benefit $3,000 $3, Monthly Instalment at the start of the 4th year of the benefit $3,000 $3, Monthly Instalment at the start of the 5th year of the benefit $3,000 $3, Total benefit paid $180,000* $191,128.92* * In both of the above examples, the total benefit paid amount represents the lump sum equivalent of the total of all monthly instalment payments over a five year period. It is the equivalent of obtaining a $180,000 or $191,129 lump sum policy and simply being paid in monthly instalments. 13

14 Monthly benefit covers For Income Secure, Business Expense and Living Expense Cover, your cover is called the monthly amount insured. The minimum monthly amount insured for each of these covers is $1,250 per month; however if Business is taken in conjunction with Income Secure Cover, the minimum monthly amount insured for Business is $500 per month. The maximums for these cover types at application are: What to include for annual income If the life insured is self-employed or a working director, use the gross income generated by the business as a result of their personal exertion after allowing for the costs and expenses incurred in deriving that income. If the life insured is employed (but not self employed), use their total remuneration package before tax, and inclusive of regular bonuses, superannuation. Income Secure Cover All except Income Secure Special Risk and Income Secure Basic for R occupation classes $60,000 per month (amounts over $30,000 are limited to a 2 year benefit period). Income Secure Special Risk and Income Secure Basic for R occupation classes $10,000 per month. The limits for the policy will be determined by the life insured s annual income. The maximum that can be insured is 1/12 of: 75% of the first $320,000 of annual income as at the cover start date 50% of the next $240,000 of annual income and 20% of the balance. If the life insured is contributing at least 5% of their annual income to superannuation or to mortgage repayments and you nominate Priority Income Option, you can insure up to 80% of the life insured s income (see page 76). Living - $5,000 per month. We will take into account the household earnings when assessing your application. The available cover may be adjusted if the life insured also has Income Secure Cover. Business - $60,000 per month. This amount can represent up to 100% of the life insured s monthly business expenses. If more than one person generates income in the business, we distribute the business expense proportionally to determine the life insured s share, unless we agree to divide the business expenses on a different basis. 14

15 Limits of your OneCare cover For each OneCare cover type, your claim will be paid if the terms of the cover purchased have been met. However, there are circumstances that may lead to a claim not being payable. Please make sure you re aware of these situations. When we will not pay We will not pay any benefit for anything we have specifically excluded from the cover as shown on the Policy Schedule. Life Cover We will not pay any benefits under Life Cover if, as a result of the life insured s intentional act or omission, their death occurs within the first 13 months from the date: the cover commenced of an increase in the amount insured, not including indexation increases (the amount we will not pay is the increased part of the amount insured) we agree to reinstate a previously cancelled cover cover was bought back under Life Cover Buy Back or purchased under Life Cover Purchase Option. The exclusion applies only to the amount of Life Cover bought back or purchased. The above 13 month exclusion period does not apply to the part of the amount insured that is replacing similar cover issued by us or another insurer if: the insurance under the policy to be replaced has been inforce for a minimum of 13 consecutive months immediately prior to the cover start date of this cover; the policy to be replaced is cancelled immediately after the issue of this cover; all similar exclusions have expired under the policy to be replaced (including exclusions which were applied to the policy after its commencement due to, for example reinstatement or increase); and no claim is payable or pending under the policy to be replaced. Where the Life Cover amount insured under this policy exceeds that of the policy to be replaced, this exclusion will apply to the excess. TPD Cover We will not pay any benefits under TPD Cover: if the life insured becomes totally and permanently disabled or there is specific loss which arises as a result of their intentional act or omission. Business TPD Cover exclusion The following exclusion applies to all Business TPD Cover. No Business TPD Benefit will be payable for TPD arising directly or indirectly and whether wholly or partly as a result of stress, anxiety, depression, fatigue (including chronic fatigue syndrome, fibromyalgia), physical symptoms of a psychiatric illness or condition, psychosis, personality disorders or emotional or behavioural disorders related to substance abuse or dependency (including alcohol, drug or chemical abuse or dependency). Trauma Cover We will not pay any benefits under Trauma Cover: if the life insured suffers a trauma condition as a result of their intentional act or omission; if the trauma event occurs within the first 90 days of us receiving the completed application for Trauma Cover for those trauma conditions marked with an *. See page 32 and 33 for the list of trauma conditions. Baby Care Option (available under female Trauma Cover) We will not pay any benefits under the Baby Care Option for: elective pregnancy termination surrogacy either being the surrogate mother or engaging a surrogate mother death or any Baby Care condition which arises as a direct result of an intentional act or omission of the policy owner, the parents of the foetus or infant, or someone who lives with or supervises the infant foetal death at less than 20 weeks unless death is due to a specified complication of pregnancy any Baby Care conditions specified under the Complications of Pregnancy Benefit arising from: In Vitro Fertilisation (IVF) and surrogate pregnancy a direct result of drug or alcohol abuse death as a result of any Baby Care conditions covered under the Congenital Abnormality Benefit of adopted or stepchildren any Baby Care condition specified under the Congenital Abnormality Benefit that occurs as a direct result of drug or alcohol abuse death that occurs as direct result of drug or alcohol abuse. 15

16 Income Secure Cover and Living For Income Secure Cover we cannot reimburse any expenses that we are not permitted by law to reimburse, or are regulated by the National Health Act 1953 or the Private Health Insurance Act We will not pay any benefits under these covers if your claim arises (either directly or indirectly) from: anything happening to the life insured in war (this exclusion does not apply to the Basic Death Benefit or the Enhanced Death Benefit for Income Secure and it does not apply to the Death Benefit for Living ) the life insured s intentional act or omission the life insured s uncomplicated pregnancy, miscarriage or childbirth. However, if the life insured spends more than three months totally disabled (or either totally or partially disabled for Income Secure Professional or significantly disabled for Living Expense) from the date their pregnancy ends and continues to be totally disabled (or either totally or partially disabled for Income Secure Professional or significantly disabled for Living Expense), we will pay benefits from the end of that three month period or from the end of the duration of the waiting period if greater. In addition, a 90 day qualifying period may apply to some trauma conditions under the Trauma Recovery and Booster Benefit marked in the cover section with an *. Business We will not pay any benefits under Business if your claim arises (either directly or indirectly) from: Child Cover We will not pay any benefits under Child Cover if your claim arises (either directly or indirectly) from: the intentional act or omission of the child, the child s parents, you or someone who lives with or supervises the child a congenital condition, i.e. a condition which is present at birth as a result of either hereditary or environmental influences In addition, a 90 day qualifying period may apply to some trauma conditions under the Child Cover Benefit marked in the cover section with an *. Extra Care Cover We will not pay any benefits under Extra Care Cover under the Extended Needle Stick Benefit: if it is as a result of the life insured s intentional act or omission. We will not pay any benefit under the Accidental Death Benefit: if, as a result of the life insured s intentional act or omission the life insured dies during the first 13 months from: the cover start date; the date we increase this cover at the request of the policy owner (not including any indexation increases). The exclusion applies only to the amount of the increase to the cover; the date we agree to reinstate the cover after it has been cancelled. anything happening to the life insured in war (this exclusion does not apply to the Death Benefit) the life insured s intentional act or omission the life insured s uncomplicated pregnancy, miscarriage or childbirth. However, if the life insured spends more than three months totally disabled from the date their pregnancy ends and continues to be totally disabled, we will pay benefits from the end of that three month period. We will not pay any benefits under this cover if at the time of illness or injury giving rise to the total or partial disability the life insured ceases to own or operate a business. 16

17 OneCare covers 1. Life Cover 2. Total and Permanent Disability Cover 3. Trauma Cover 4. Child Cover 5. Extra Care Cover 6. Income Secure Cover 7. Business 8. Living Life Cover Total and Permanent Disability Cover Living Business Trauma Cover Child Cover Extra Care Cover Income Secure Cover 17

18 1. Life Cover Loans and outstanding financial commitments will still be there in the event of the life insured s untimely death or terminal illness. Life Cover provides a lump sum payment (or instalment if you choose this option) when the life insured dies or becomes terminally ill. In 2010, 42,844 Australians died from cancer accounting for about 3 in 10 deaths in Australia, making it the second most common cause of death, exceeded only by cardiovascular diseases (CVD). Source: Cancer in Australia: an overview, 2012 Australian Institute of Health and Welfare and Australasian Association of Cancer Registries, December Who can apply? You can apply for Life Cover if the life insured is between the ages in the following table. Premium type Minimum Entry ages Maximum Stepped premium 15 75^ Level premium Choosing the right cover It s important to choose cover that s right for you taking into account any loans and assets, and your family s goals for the future. The premiums you pay will vary based on the amount of cover, and any extra cost options you choose. Your financial adviser can help you make the right choices, and ensure your cover suits your needs. What is the Death Benefit? Page 19 What is the Terminal Illness Benefit? Page 19 What are the ancillary benefits? Page 19 Lump sum covers Standard features Page 44 Lump sum covers Extra cost options Page 45 Benefit reductions Page 20 When we will not pay Page 15 When Life Cover ends Page 20 In 2009, Coronary heart disease was the leading cause of death for both males and females, followed by lung cancer for males and strokes for females. Source: Australia s Health 2012 Australian Institute of Health and Welfare 2012 ^ Maximum entry age for policies held inside super is age 74. Policy ownership types The table below shows if this cover may be used with each of the policy ownership types available. Throughout the Life Cover section, these symbols will appear where certain information applies to a limited set of policy ownership types. Life Cover is available. Life Cover is available. 18

19 What is the Death Benefit? If the life insured dies, we pay the amount insured. What is the Terminal Illness Benefit? Living If the life insured is diagnosed as having a terminal illness, we will pay the amount insured. What are the ancillary benefits? These additional benefits are automatically included with your Life cover. Business Built-in benefits What is the benefit? Advance Assistance Benefit Accommodation Benefit Financial Advice Benefit Orphan Benefit Serious Disability Premium Waiver If the amount insured is more than $25,000 when the life insured dies, we will pay an advance of $25,000 of the Life Cover amount (or 3 times the instalment amount, if applicable) on receipt of the life insured s full Australian death certificate or other evidence satisfactory to us showing cause of death. The maximum we will pay for this benefit or an equivalent benefit across all OnePath policies covering the life insured will be $25,000. If we pay a Terminal Illness Benefit under Life Cover for a life insured and a medical practitioner certifies that the life insured must remain confined to bed due to terminal illness for which we paid the claim and: the life insured is more than 100km from their home and an immediate family member is required to travel from their home to be with the life insured; or an immediate family member is required to travel more than 100kms from their home to be with the life insured. We will reimburse accommodation costs for an immediate family member of up to $500 per day for a maximum of 30 days. If we pay the amount insured for death or terminal illness, we will reimburse up to $2,000 for the preparation of a financial plan by a financial adviser. This benefit will be paid once across all OnePath policies covering the life insured. (Available after policy has been in force for three years.) If the life insured and their spouse suffer an accidental death as a result of the same accident and they are survived by one or more dependant child we will pay an additional $10,000 for each dependant child subject to a maximum benefit amount of $30,000 with respect to any one family. If the life insured suffers an illness or injury that results in the life insured being permanently unable to perform at least two of the activities of daily living without the physical assistance of another adult person, we will waive the premiums for the life insured until the earlier of: two years premiums having been waived; or the date cover ends under the policy. This feature only applies if the life insured is age 65 or under on the first policy anniversary date following the illness or injury. Trauma Cover Child Cover Extra Care Cover Income Secure Cover Life Cover Total and Permanent Disability Cover 19

20 Built-in product feature Features PDS Section Page When Life Cover ends Life Cover for a life insured will end automatically on the earliest of: Indexation Lump sum covers Standard features 44 the date we pay (or commence paying) the full Life Cover amount insured (or instalment) Future Insurability Premium Freeze Lump sum covers Standard features Lump sum covers Standard features the date the cover is cancelled and/or avoided in accordance with our legal rights the date we cancel and/or avoid the policy because the premium has not been paid when due the date of the life insured s death Options available at extra cost Extra cost options PDS Section Page Premium Waiver Disability Option Business Guarantee Option Value Protector Option Benefit reductions Lump sum covers Extra cost options Lump sum covers Extra cost options Lump sum covers Extra cost options The Life Cover amount insured will be reduced by any amount paid for a life insured under your policy for: the Advance Assistance Benefit TPD and/or Trauma Cover where it is an option to Life Cover TPD and/or Trauma Cover paid under another linked policy where it is under a Link arrangement the date we receive written notification from you to cancel the cover the cover expiry date shown on the Policy Schedule (if applicable) the date the Life Cover is reduced to zero as a result of payment of a TPD or Trauma Benefit under this policy or a linked policy under a Link arrangement if the policy is a OneCare policy, the date you are no longer eligible to have superannuation contributions made or transfers (as prescribed under superannuation law) to the OnePath MasterFund if the policy is a OneCare policy, the date you are unable to roll over or transfer existing superannuation amounts from other OnePath superannuation products or external superannuation products, for their OneCare. if the policy is a OneCare External Master Trust policy, the date the life insured ceases to be a member of the Master Trust the cover expiry age (if applicable): The expiry age that applies if the cover is issued inside superannuation is the policy anniversary when the life insured is age 75. We will, however, accept an application for the life insured to continue the Life Cover on the same terms under a policy issued outside of superannuation without further underwriting. There is no expiry age if the policy is issued outside superannuation. 20

21 2. Total and Permanent Disability Cover There are some setbacks that you recover from, and others that will stay with you for the rest of your life. To be considered totally and permanently disabled (TPD) generally means that the life insured is unlikely to ever be able to return to work. TPD Cover is available. It may be linked to Life Cover or Trauma Cover; or Stand Alone. Living TPD Cover is designed to provide long-term financial support if the life insured is unable to return to work because of illness or injury. Who can apply? You can apply for TPD Cover if the life insured is between the ages in the following table. TPD definition Minimum Entry ages Maximum Any/Any/Own Occupation Link Business Home-maker/ Home-Maker working/ -working 15 75*^ * The maximum entry age for -working TPD Cover under OneCare, OneCare policies issued to an SMSF and OneCare External Master Trust is age 74. ^ For level premiums the maximum entry age is age 60. Policy ownership types The following table shows how this cover may be used with each of the policy ownership types available and the linking options with other covers. Throughout the TPD Cover section, these symbols will appear where certain information applies to a limited set of policy ownership types. Choosing the right cover TPD Cover is available with some restrictions on cover types and benefits. It may be linked to Life Cover and/or non-superannuation TPD Cover; Link Trauma; or Stand Alone. It s important to choose a level of cover and options that are right for you taking into account your debts and assets, your requirements for quality care, and your lifestyle goals. The premiums you pay will vary based on the type of TPD Cover, as well as any extra cost options you may choose to tailor your cover. Your financial adviser can help you make the right choices, and ensure your cover suits your needs. What types of cover are available? Page 22 What is the TPD Benefit? Page 22 What is the Partial payment for specific loss? Page 22 When is the full TPD amount payable? Page 22 What are the ancillary benefits? Page 27 Link arrangements Page 37 Lump sum covers Standard features Page 44 Lump sum covers Extra cost options Page 45 Business Trauma Cover Child Cover Extra Care Cover Income Secure Cover Lump sum covers Buy backs and reinstatement options Page 47 Benefit reductions Page 28 When we will not pay Page 15 When TPD Cover ends Page 29 Life Cover Total and Permanent Disability Cover 21

22 What types of cover are available? There are several types of TPD Cover that you may choose from depending on your needs. They include: Any Occupation TPD Own Occupation TPD Business TPD Home-maker TPD -working Link TPD Link SIS Own Occupation TPD Any Occupation TPD Home-maker TPD -working Link TPD Link SIS Any Occupation TPD The current occupation of the life insured will determine what types of TPD Cover are available. Your financial adviser will be able to determine what cover is available for your occupation. Maximum sum insured limit For any combination of Any Occupation, Any Occupation, Own Occupation, Link, -working and -working TPD the maximum amount of cover you may apply for is $5 million. For Business TPD the maximum amount of cover you may apply for is $10 million. If this cover is applied for in addition to other TPD, the combined amounts cannot exceed $10 million. For the Home-maker and Home-maker TPD definition the maximum amount of cover you may apply for is $2 million, or if combined with -working and -working TPD you may apply for a maximum of $3 million. What is the TPD Benefit? If the life insured becomes totally and permanently disabled and meets the conditions of the TPD definition chosen at the time of application, we will pay the amount insured. The life insured must survive without life support for up to eight days from the date they satisfy the element of the TPD definition. For those elements that state that the life insured must be unable to work for three months, no additional survival period applies. If the definition on the Policy Schedule in respect to the life insured is Any Occupation, Any Occupation, Link SIS Any Occupation, Own Occupation or Link SIS Own Occupation and the life insured satisfies the relevant TPD definition as well as either a Loss of limbs and/or sight or Loss of independent existence or Cognitive loss as defined in the General terms and phrases section on page 86 and page 88 then the amount paid will be increased. The amount of the increase will depend on the period of time the life insured has held their cover. The amount of the increase will be: 5% after the 2nd policy anniversary; 7.5% after the 3rd policy anniversary; 10% after the 5th policy anniversary. The increase is not available when the TPD amount insured in respect of the life insured is $5 million or greater on the date of disablement. What is the Partial payment for specific loss? (Not available for Business TPD, Any Occupation, Home-maker, -working or Link SIS Any Occupation.) The Partial payment for specific loss will pay 25% of the TPD Cover amount insured at the time the specific loss occurs subject to a minimum of $10,000 and a maximum of $500,000, or if an instalment benefit payment type applies, an equivalent instalment amount. We will pay the Partial TPD Benefit if as a result of illness or injury the life insured suffers the total and permanent loss of: one limb, where limb means the whole hand or the whole foot; or the sight in one eye. The TPD Cover amount will be reduced by the amount paid for specific loss. This benefit does not apply if the policy: is part of a transfer from another OnePath product, unless the TPD Cover has been fully underwritten; or is issued as part of a continuation option, unless the TPD Cover has been fully underwritten. When is the full TPD amount payable? We will pay your TPD Cover amount insured if the life insured satisfies one of the definitions of TPD in the TPD Cover you have chosen to be covered for under your policy (or policies if you have Link TPD). To find the definition which will apply to you, go to the TPD Cover definition you have selected for your policy or policies listed below. 22